Wednesday, November 12, 2008

Jones Trading

This market is out to whip us, just no two ways about it. Look closely at the day though, even a priori, simple trend channels and breakout awareness could have kept you in the direction of the trade and permitted partial capture of the reversals.

I didn't trade today while on the road except for a very rapid gap scalp in the pre, but the key (like any day) would have been to let the trends reveal themselves through time while watching key levels, looking for channel break outs, and accepting a few scratches along the way. And, last but not least, requiring trend alignment in price and non-price indicators -- lest you bring a knife to a gunfight back along the Indiana Jones theme.

I tend to think we could find daily support near here, but am equally concerned about the possibility of another quick, significant move down if we break, even though it seems less likely during this bull season. Sorry I don't have more to back this up while traveling, just split (okay, virtually bipolar) intuition for now.


Never Investment Advice

No comments: